[pigdog]

Please give us the definition of the terms "real" and "nominal" you use in this post before we go further.

[Principled]

tick tick tick

[Your Nightmare]

nominal wage - The market wage paid to labor stated in current prices. This is the actual wage received by labor for performing productive work.

real wage - The inflation-adjusted purchasing power of the nominal wage.


I specified the after-tax real wage. I probably should have just said "after-tax wages" since I wasn't discussing wages over time .